The Union Cabinet on Wednesday (December 31, 2025) approved the widening and strengthening of NH-326 in Odisha, upgrading the existing two-lane stretch to a two-lane highway with paved shoulder from 68.600 km to 311.700 km under the EPC mode.
According to an official statement, the total capital cost for the project is ₹1,526.21 crore, which includes a civil construction cost of ₹966.79 crore.
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The statement said the upgradation of NH-326 will make travel faster, safer, and more reliable, resulting in overall development of southern Odisha, particularly benefiting the districts of Gajapati, Rayagada, and Koraput.
Improved road connectivity will directly benefit local communities, industries, educational institutions, and tourism centres by enhancing access to markets, healthcare, and employment opportunities, thereby contributing to the region's inclusive growth, it added.
